You are buying a house and will borrow \\( \\$ 205,000 \\) on a 30...
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You are buying a house and will borrow \\( \\$ 205,000 \\) on a 30 -year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of \4.35. Alternatively, she tells you that you can \"buy down\" the interest rate to \4.15 if you pay points up front on the loan. A point on a loan is \1 (one percentage point) of the loan value, You believe that you witl ive in the house for only eight years before selling the house and buying another house. This means that in eight years, you will poy off the remaining balance of the original mortgage. What is the maximum number of points that you would be willing to pay now? (Do not round intermediate colculations. Round your answer to 2 decimal ploces, e.g., 32.16.)
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